RBZ battles long foreign payment queues

RBZ battles long foreign payment queues
Published: 21 April 2017 (98 Views)


PROCUREMENT of imported raw materials and capital equipment has become a nightmare for most companies as the Reserve Bank of Zimbabwe (RBZ) battles long foreign payment queues, an official has said.

Zimbabwe Revenue Authority (Zimra) board chair Mrs Willia Bonyongwe revealed this yesterday in the tax authority's revenue performance report for the first quarter ended 31 March 2017.

She acknowledged the difficult macro-economic environment that has seen industry operations being hampered by delays in foreign payments due to the tight liquidity situation in the economy and biting cash shortages.

The beginning of the tobacco marketing season mid-last month as well as the implementation of Statutory Instrument 64 of 2016, which restricts importation of locally manufactured products, have not eased the crisis as much as anticipated, despite improvement in product quality and volume of sales, she aid.

"Unfortunately the liquidity situation worsened again during the first quarter of 2017. Procurement of imported raw materials and capital equipment has become a nightmare and there are long foreign payment queues at the Reserve Bank of Zimbabwe, eating into the gains of S.I.64 of 2016," she said.

"Regional currencies continue to weaken against stronger United States dollar, thus worsening Zimbabwe's export competitiveness."

Mrs Bonyongwe, however, said the responsibility to address the liquidity situation does not lie with the RBZ alone but was the duty of all Zimbabweans.

"It is the duty of everyone to act responsibly and in the national interest in how cash is handled for the country to restore stability in this area," she said.

The apex bank has blamed illicit cash dealings such as money laundering and externalisation for haemorrhaging foreign exchange from the economy.

Resistance to use of plastic money has also compounded the situation as more depositors continue to demand cash evidenced by continued queues at banks.

Mrs Bonyongwe also bemoaned the resurgence of inflation, which is rising fast with the year on year rate breaking into the positive zone for the first time in 29 months. Inflation, according to Zimstat, gained 0.71 percentage points in January this year from -0.65 percent to 0.06 percent in February 2017.

"This trend is very dangerous given that the dominant currency is the US dollar, which is currently strengthening. Therefore, having the US dollar as the dominant currency worsens our export competitiveness.

"Under the circumstances, the only solution to the liquidity crisis is increasing production and exports to earn foreign currency," said Mrs Bonyongwe.

She, however, reiterated that prospects looked brighter for the country's economy with growth projections of 3.7 percent this year from the initial 1.7 percent. President Mugabe has said more economic gains would be registered this year following the good rains and anticipated bumper harvest.

Meanwhile, Zimra has surpassed its first quarter revenue collections by 6.09 percent to $862.47 million from the targeted $812.94 million.

During the period the authority's net revenue grew 14 percent from $724 million in the same period last year. Mrs Bonyongwe attributed the growth to revenue enhancement measures such as automation, greater enforcement and the fight against corruption.

She said the bulk of revenue was derived from VAT on local sales (22.42pct), individual tax (20.05pct) and excise duty (18.17pct). Company tax contributed 11.20pct while the rest of the revenue heads contributed 28.16 percent.

- chronicle

Tags: Zimra, Forex, Payment,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

LIVE: Mugabe rally

by Staff reporter | 21 July 2017 | 151 Views

Thambolenyoka's changed life

by Staff reporter | 21 July 2017 | 113 Views

PHOTOS: Plumtree complex burned down

by Plumtree Resident | 21 July 2017 | 139 Views

Dear Heavenly Father: When will this religious madness end?

by Tafi Mhaka | 21 July 2017 | 110 Views

Youths loot goods from shops

by Stephen Jakes | 21 July 2017 | 129 Views

Zanu PF forces villagers to attend meeting

by Stephen Jakes | 21 July 2017 | 65 Views

Mugabe should be jailed for his murderous crimes

by Kelvin Kudenga | 21 July 2017 | 140 Views

South Africans urged to make every day a Mandela Day

by Kelvin Kudenga | 21 July 2017 | 55 Views

Chinamasa presents 'empty' budget review

by Staff reporter | 21 July 2017 | 62 Views

Zimbabwe land tenure systems under review

by Staff reporter | 21 July 2017 | 49 Views

Beitbridge-Harare Highway dualisation gets national project status

by Staff reporter | 21 July 2017 | 82 Views

ZimStat apologises for wrong accidents statistics

by Staff reporter | 21 July 2017 | 61 Views

Dabengwa bemoans Tsvangirai dictatorship

by Staff reporter | 21 July 2017 | 76 Views

Zapu calls for 2018 elections postponment

by Staff reporter | 21 July 2017 | 57 Views

Forged MBA lands ZOU pair in trouble

by Staff reporter | 21 July 2017 | 79 Views

Zanu-PF activists destroy village head's homestead

by Staff reporter | 21 July 2017 | 62 Views

Mutuma 'donates' to Bosso

by Staff reporter | 21 July 2017 | 89 Views

Woman tortures, murders minor

by Staff reporter | 21 July 2017 | 71 Views

Man kills wife over SMS 'from lover'

by Staff reporter | 21 July 2017 | 58 Views

Mugabe arrives in Bulawayo

by Staff reporter | 21 July 2017 | 52 Views

'War veterans not forming political party'

by Staff reporter | 21 July 2017 | 32 Views

Founders High pregnancy scandal: 3 teachers implicated

by Staff reporter | 21 July 2017 | 41 Views

Grace Mugabe's $1,4m diamond ring saga rages on

by Staff reporter | 21 July 2017 | 52 Views

Judge reserves judgment on Gift Banda case

by Staff reporter | 21 July 2017 | 36 Views

Amidu quits Caps United

by Staff reporter | 21 July 2017 | 100 Views

Cops sjambok granny rapist

by Staff reporter | 21 July 2017 | 38 Views

'West fuelling divisions among war veterans'

by Staff reporter | 21 July 2017 | 71 Views

Cab driver stone passenger to death

by Staff reporter | 21 July 2017 | 38 Views

Mnangagwa, Jonathan Moyo square-off

by Staff reporter | 21 July 2017 | 48 Views

Woman fakes identity, claims late ex-hubby's pension

by Staff reporter | 21 July 2017 | 36 Views

Mass hysteria hits school

by Staff reporter | 21 July 2017 | 39 Views

Touts kidnap, assault traffic police officers for impounding car

by Staff reporter | 21 July 2017 | 33 Views

Bosso centenary fest

by Staff reporter | 21 July 2017 | 65 Views

Matches row stabbing man jailed for 10 years

by Staff reporter | 21 July 2017 | 31 Views

Cornered cheat lunges at hubby's manhood in bush sex drama

by Staff reporter | 21 July 2017 | 55 Views